President William Ruto defended his government’s housing project on Sunday, emphasizing its significant role in generating employment and providing decent housing for Kenyans.
Addressing the Salvation Army’s 100th-anniversary celebration in Nairobi, Ruto reaffirmed the government’s commitment to the development pillar, expressing confidence in its potential to improve the lives of impoverished citizens.
“Many have told me that I bother them with the Housing Fund talk, asking me who told you we need houses? We have many Kenyans living in slums and it is our responsibility, for those with a job to contribute to the Levy to provide shelter for those who don’t have,” said Ruto.
He outlined a broader vision, aiming to create employment opportunities for young people through housing, labor export, digital jobs, and manufacturing.
“We want to have a program that will employ young people through housing, export of labour, digital jobs and manufacturing so that our young people do not remain jobless after graduating from universities.”
The controversial levy is currently facing legal challenges, after a three-judge bench in 2023 ruled against its collection, citing discrimination and a violation of the constitution.
However, a bill supporting the levy’s collection passed through parliament on February 22, 2024. This bill mandates both salaried and non-salaried Kenyans to contribute 1.5% of their income to the Housing Fund.
Despite the parliamentary approval, Attorney General Justin Muturi cautioned the Kenya Revenue Authority against deducting the levy, citing the absence of a legal framework to support the deduction.
The bill is now set to be presented before the Senate for the first reading, with the government aiming to resume deductions in March.
